Major Rating Factors:
Fair reserve development (3.6 on a scale of 0 to 10) as reserves have generally been sufficient to cover claims. Fair profitability index (3.3) with operating gains in each of the last five years. Return on equity has been low, averaging 0.9% over the past five years. Fair overall results on stability tests (4.7) including excessive premium growth. Strengths include potentially strong support from affiliation with Loews Corporation.
Other Rating Factors:
Strong long-term capitalization index (10.0) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.0) with ample operational cash flow and liquid investments.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
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Licensed in:
AR, AZ, CO, GA, IL, IN, MA, MI, MN, MO, MT, NC, ND, NM, NV, NY, OR, PA, SD, TX, UT, WI, WV
Principal Investments:
Investment grade bonds (78.6%), cash (12.5%), other (8.9%)
Corporate Info
Group Affiliation
Loews Corporation
Investment Rating
Company Address
151 N. Franklin Street
Chicago, IL 60606
Chicago, IL 60606
Phone Number
(312) 822-5000
NAIC Number
25232
Website
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